The project — which comprises a mix of two- to five-bedroom houses and bungalows, situated in the Cumbrian village of Hackthorpe — is being delivered by regional housebuilder, Genesis Homes, in a joint venture with Housing Growth Partnership (HGP).
Genesis Homes approached UTB’s director of property development, Huw Jenkins, for the loan when its original lender withdrew an offer of funding at the onset of the Covid-19 pandemic.
The bank stepped in at short notice to finance the £6.7m development at 62% LTGDV on a 25-month loan term, as Genesis Homes was due to complete the site acquisition.
Nicky Gordon, managing director at Genesis Homes, said: “Having our original funding offer pulled as we were about to complete our purchase of the site was far from ideal.
“Fortunately, I was aware that UTB was continuing to lend, despite the added complications and uncertainty surrounding the Covid-19 pandemic.
“Huw quickly appraised our proposal, liaised with HGP and, very soon afterwards, confirmed that UTB would provide the funding we needed to acquire and develop the land.
“Huw’s experience and knowledge of the housebuilding process and the challenges faced by SME developers is second to none and I look forward to this and many more successful developments with UTB and HGP.”
Huw added: “Although Genesis Homes is a relatively young company, it’s evident from its success over the last few years that it’s a company with a great reputation and a bright future.
“At UTB, we’re keen to build strong relationships with quality housebuilders, supporting not just one scheme but several and helping them to achieve their long-term growth ambitions.
“2020 was a challenging year for most housebuilders and I’m delighted UTB was able to step in at short notice and enable Nicky and the Genesis Homes team to crack on with this excellent new development, delivering high quality homes to families in the North West.”
John Mckeon, investment director at HPG, commented: “Lenders’ mettle has been well and truly tested over the last year, and UTB have shown yet again that they’re a reliable and trusted funding partner.”
Genesis Homes, which was founded in 2017, expects to complete around 150 new homes in 2021.
Source: Development Finance Today